PTI cited some analysts as saying that Indian steel majors may cut prices by the most in a year to counter cheap imports from Russian companies seeking newer markets as demand dries up in Europe.

According to seven analysts and steel producers surveyed by Bloomberg, TATA Steel, Steel Authority of India Ltd. and JSW Steel Ltd may cut rates by at least 5 percent in the quarter ending September 30.

According to the survey, slowing demand at home, gains in the rupee and oversupply in China may prompt the companies to reduce tariffs further.

Mr Niraj Shah an analyst at Fortune Equity Brokers Ltd in Mumbai said that Shipments from Russia and the Commonwealth of Independent States climbed as companies in that region shifted sales from Europe where demand contracted.

A slowing economy at home may weaken deliveries that rose 8.8% in the last quarter. Mr Koushik Chatterjee group chief financial officer at TATA Steel said that “There is a significant overcapacity in Europe.”

Mr Chatterjee said steel prices haven’t declined in the past few months and didn’t say if the company will cut prices.

‘Pre-crisis level’ TATA Steel, which began producing the alloy in 1912, has gained 24% this year, making it the second-best performing stock in the Bloomberg Asia Pacific Iron/Steel Index, while JSW Steel has risen 34 per cent, the top performer in the measure, after the companies raised prices in April.

Source - PTI

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